Freddie Mac Bulletin 2010-17
July 29th, 2010
Freddie Mac issued Single Family Seller/Servicer Guide (Guide) Bulletin 2010-17.
With this Single-Family Seller/Servicer Guide (“Guide”) Bulletin, we are updating Guide Chapter C65, Home Affordable Modification Program, to incorporate changes announced in Bulletins 2009-26, 2009-28, 2010-1 and 2010-3, and to incorporate certain Supplemental Documentation - Frequently Asked Questions (“FAQs”) posted by the Program Administrator on www.HMPadmin.com. With these Bulletins and FAQs incorporated into the chapter, Servicers now have one consolidated source for Freddie Mac HAMP requirements.
We are also updating Chapters B65, Workout Options, and C65, to clarify the hierarchy for evaluating Borrowers for loss mitigation alternatives.
The update of Chapter C65 also includes the following changes to Freddie Mac’s requirements for HAMP:
New requirements
■ Servicer implementation of certain aspects of the United States Department of the Treasury (“Treasury”) HAMP Supplemental Directive 10-02 (Borrower Outreach and Communication) (“SD 10-02”), including a revision to our Borrower Notice requirements
■ Revisions to income verification requirements, including the elimination of the use of unemployment benefits as a source of income when evaluating a Borrower for a Trial Period Plan
■ Seasoning requirements for credit reports
■ Transfers of Servicing requirements
■ Eliminating weekly Freddie Mac HAMP activity reporting and providing a new template for expense reimbursement
■ Introducing a new process under which Servicers must refer a Mortgage to Freddie Mac for review when the Borrower did not qualify for HAMP or other Guide foreclosure alternatives
Additional guidance
■ Instructions for completing the Form 1128, Loss Mitigation Transmittal Worksheet (“LMTW”) specific to the closing of a HAMP modification
■ Amounts that may be capitalized under HAMP
■ Servicer and Borrower incentive payment process
■ Investor reporting and remitting requirements
Servicers should review revised Chapter C65 in its entirety so that they have a clear understanding of Freddie Mac's requirements with respect to HAMP.
To help Servicers familiarize themselves with the updated Chapter C65 and the new requirements, Freddie Mac is offering a new HAMP webinar, Home Affordable Modification Program (HAMP): What’s New, available through Freddie Mac’s Learning Center. Additional information can be found at http://www.freddiemac.com/ontrack/html/LearningCenter/ClassDescription.jsp?srsNum=HAMP_WN.
EFFECTIVE DATES
All changes included in this Bulletin are effective immediately except as otherwise noted.
To view the Bulletin in its entirety, please click here
About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with approximately 800 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.